Crocs (NASDAQ:CROX) stock is soaring on Wednesday as the company responsible for the comfortable shoes with holes received an upgrade from an analyst.
Susquehanna analyst Sam Poser said that he upgraded the company from Neutral to Positive, also increasing the company’s price target from $25 to $31. He added that the company recently became a buy after the repurchase and conversion of Blackstone Group LP’s (NYSE:BX) stock position in Crocs.
“The action removes a significant financial overhang from the company’s capital structure/P&L and shifts more control of CROX business into the hands of existing and potential shareholders,” Poser said. He added that the company’s future looks bright as he expects growth to accelerate on the improvement of its products, bolstering the brand’s value in the footwear market.
Crocs is expected to gain some ground in 2019 thanks to exciting collaborations such as the company’s second one with hip-hop giant Post Malone, which sold out in seconds. The partnership also brought in a lot of attention from social media and the sneaker world.
It is not out of the question for the company to make some headway in the new year with some similar collaborations, although it is unclear how far beyond its comfort zone Crocs will go to appeal to a new public.
Crocs shares were up 5.16 percent at $27.32 at the time of publication.
CROX stock is up about 6.5% on Wednesday.